SIOUX FALLS, SD, (KELO.com) — With 2020 coming to an end, economies in the U.S. have felt the effects of the pandemic. But, some Midwestern economies were already rough before 2020 took its toll.
MoneyWise compiled information that showed the poorest cities in all 50 states and the Midwest had poverty percentages in the double digits.
In South Dakota, the poorest city in the state is Rapid City. Even with high tourism, the city’s poverty rate is at 13.7% due to stagnant wages. From 2007 to 2017, children benefiting from federal food stamp programs rose to 47%.
Lincoln, Nebraska found itself with a poverty percentage rate of 11.8%. Salaries fall lower than the state’s median and housing prices and unemployment numbers are higher. The University of Nebraska held a study showing that Lincoln’s weakness in economy is also due to a lack of entrepreneurship in STEM jobs.
Iowa City, Iowa holds the highest poverty rate in the Midwest at 25.9%, more than twice the statewide rate. With high transportation costs, limited access to childcare, and home median values being $100,000 higher than the state’s median, not many University of Iowa alumni stick around the college town after graduation.
A population boom has hit Fargo, North Dakota in the last few decades, dragging its poverty rate to 16.1%. Even with low unemployment rates, household incomes are still too low for some families to rise above that line.
Lastly, Minnesota‘s city of St. Cloud has found its poverty rate at 18.2%. According to the Minnesota State Demographic Center, about half of St. Cloud’s poor population are working full or part-time and still falling below the line. However, the city does help match families with low income by having low real estate prices.
